AirTran, Midwest Merger DEAD!

[whoknows]

I see your point TC, but I think if you invest in a company you would want to see that company make money and get a good return on your investment.

NWA recently mentioned that now all of Midwest fuel be added to their own fuel planing since they get a much better rates.

I really don't see NWA and Midwest as competitors anymore since NWA own a part of Midwest now.

NWA has owend all or part of Mesaba and Pinnicle at one time or another. NWA has manipulated both regional carries to help fight their war (NWA's value) and have been very welling to sacrifice the value of Pinnicle and Mesba. MEH is now a pon in a much bigger game. I hope that the employess of MEH do not get on the same ride Mesba and Pinncle have, but I think they will. I think MEH will now be whip-sawed like all the other regionals in the NWA family.

 

[Propsync]

I didn't see this coming!

Wow. A lot of interesting ideas. Here's what I get out of it.

1. I thought Midwest didn't want to sell. To anybody. If anybody thought a low-cost airline couldn't run Midwest, what about a company that only INVESTS in an airline? Just because the offer changes to all cash means Midwest has to sell? What a bunch of crap. What happened to saving the cookie? Do you really think this current management can run Midwest better with more money? They'll be twice as many people sitting around HQ and the Best Care Campus having no clue what their job is if you asked them. That's what happened the last time these jokers were making money.

2. Northwest. What a wild card. Lots of ideas here and ANYTHING could happen. They could turn MKE into an alternate airport if they wanted to. Where I believe AirTran would have kept almost everyone, Northwest could easily say 'Gut it like a fish'.

3. Timing. AirTran was pursuing this for almost a year. These guys show up in a week and a deal is ready to go? WTF? Shouldn't Midwest be having meetings, and meetings of meetings, and focus groups, and meetings for meetings and focus groups? Normally they take months just to decide on a conference room. Just because there's more money on the table means these guys can do it better?

I guess all I can say is good luck to the employees. You're going to need it now. Management has sold you out to unknown puppets with Northwest pulling the strings.

 

[Lear70]

But TPG Capital is not looking to cut service or employment, said Capt. Jay Schnedorf, head of the pilots union at Midwest Airlines.

"Their intent is to grow Midwest Airlines," Schnedorf said. He said TPG Capital's resources would allow Midwest Air to have more growth opportunities.

Yeah, 'cause pilot unions are ALWAYS "in the know" about what management's "big plan" is...

The level of Northwest's involvement in TPG Capital's bid will likely determine whether it gains approval from federal antitrust regulators, Hamilton said.

Yep... antitrust, here we come. I give it 50/50 odds.

Hoeksema also announced plans to reduce the number of wide, two-across seats on Midwest Airlines and add more narrow seats - boosting passenger count and revenue for those flights.

This strikes me as particularly funny in this journalistic garbage... If you want to call it journalism.

In the middle paragraphs, they use some interesting verbs to describe what AAI planned, then go on at the END of the article to quietly mention that Hoeksema plans to do the same thing. It's like watching CNN - unbiased reporting hardly even EXISTS in this country anymore.

All that aside, it's going to get interesting in MKE. I can just about guarantee you that AAI will step up the flights out of MKE to all the prime high-yield destinations. We need to flow the airplanes through somewhere, and there's no reason not to pull the gloves off now.

If the deal dies due to antitrust and no one steps up to foot NWA's part of the cash deal, we might very well be here again next year,,, with 3 more BoD members and a significantly-reduced offer.

I'm personally just glad it died (or got put off that much longer). I'm hoping the rumors of a Frontier merger (friendly, this time), are accurate. I like that route map a heck of a lot more, even though the fleet commonality isn't there.

Good luck, guys...

 

[FlyWolf]

NWA has owend all or part of Mesaba and Pinnicle at one time or another. NWA has manipulated both regional carries to help fight their war (NWA's value) and have been very welling to sacrifice the value of Pinnicle and Mesba. MEH is now a pon in a much bigger game. I hope that the employess of MEH do not get on the same ride Mesba and Pinncle have, but I think they will. I think MEH will now be whip-sawed like all the other regionals in the NWA family.

I think it depends on how much money NWA is contributing in this deal, don't forget TPG and the other parties.

I have no doubt about the uncertain future of Midwest, but isn't this part of the airline industry that we pilots have to live with anway?

 

[mnboyev]

Remember a little carrier called Champion ?... NWA went out and bought the ticket from Salt Lake City... used Champion to fight Sun Country for years... NWA 727's painted up blue and white... flying MLT flights and ball charters.... Hmmm..... This doesnt surprise me at all... good luck to all at Mid Ex... NW is gonna buy another carrier to do its fighting... Hmmm... Seen this playbook before.

All to keep Tranny out of NW territory... humorous and entertaining to watch.. How many times has NW built up MKE to only tear it down... Hopefully the DOJ looks at that..

Its never dull around the watercooler.

 

[deadstick]

1. I thought Midwest didn't want to sell. To anybody. If anybody thought a low-cost airline couldn't run Midwest, what about a company that only INVESTS in an airline? Just because the offer changes to all cash means Midwest has to sell? What a bunch of crap. What happened to saving the cookie? Do you really think this current management can run Midwest better with more money? They'll be twice as many people sitting around HQ and the Best Care Campus having no clue what their job is if you asked them. That's what happened the last time these jokers were making money.

To anybody BUT AirTran. This gives TH 1) $16 for his own shares, 2) his cushy job and salary, 3) no more stock holders to answer to, 4) no law suit because the stockholders got a better deal than AAI. He gets his cake and eat it, too. Can they do better? Doubt it. In the service, when a commander doesn't do well, he gets replaced.

I guess all I can say is good luck to the employees. You're going to need it now. Management has sold you out to unknown puppets with Northwest pulling the strings.

TH has his parachute. Everybody at YX has a backpack.

If the deal dies due to antitrust and no one steps up to foot NWA's part of the cash deal, we might very well be here again next year,,, with 3 more BoD members and a significantly-reduced offer.

You said it. Don't you think somebody would have picked-up the phone and called DOJ for a temerature reading, first? But if this does go down in flames TH can say "It's not my fault. The government did it. I'm sorry AAI is only offering $10/share, now."

 

[TV9Driver]

unfortunately, this will end badly for MEH in the next 2-3 years. anytime you are controlled by a person/company that has spent time and money trying to put you out of business, it's not a good situation.

i also think this is bad for AAI - we need to find something else soon for our growth plans or we will be selling off 737 slots. Frontier would be great. Right now Joe L. and Bob F. are 0-2 on mergers in the last 3 years......

 

[Schwanker]

I hate to be a pessimist here, but you're now owned by money-men and an airline that wanted to see you gone a long time ago.

I don't have much hope for the MEH people. Sorry. Good luck. TC

You really think they wanted them gone? If that were the case, they'd been gone long ago. NWA wanted MEH in place exactly for the reason that just played out, keep out the larger competition.

Schwanker

 

[roughneck]

I think there is a high probablity that AirTran will be bought by SWA.

 

[PCL_128]

I fear that the MEH guys will soon learn the hard way what it's really like to have anything to do with Northwest Airlines. Good luck.